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GBP/USD is expected to see further consolidation but with support at 1.3430 ideally holding for an eventual retest and break above 1.3710/20, analysts at Credit Suisse report. 

Key quotes

“GBP/USD weakness has extended to and held support from the late December low at 1.3430 and the (so far) strong recovery from here is seen adding weight to our view weakness is a consolidation/corrective phase ahead of the core uptrend eventually resuming.” 

“The cable needs to break above 1.3636/71 to suggest the setback is already over for a retest of 1.3710/20. Beyond this latter area though is needed to confirm the core uptrend has indeed resumed with resistance then seen next at 1.3804 ahead of our next main objective/resistance at 1.4302/77.” 

“Support is seen at 1.3535 initially, with a move below 1.3505 needed for a retest of 1.3454/1.3430. Below here would now warn of a small top to warn of a more concerted correction lower with support then seen next at the 55-day average at 1.3365, with fresh buyers expected again here for now.”